What technology does the IRS use? Q.What technology does the IRS use? A.The IRS’s computer systems and data analytics have not kept up with technological advances despite decades of modernization initiatives. The Inflation Reduction Act provides the IRS with a new source of funding dedicated to business systems modernization. Read more about What technology does the IRS use?
What is the audit rate? Q.What is the audit rate? A.The audit rate is the percent of tax returns filed for a tax year that are ultimately examined by the IRS. About 153.9 million individual tax returns were filed based on 2018 income, but only about 520,000 of those returns were audited—an overall audit rate of 0.3 percent. Audit rates are generally highest for high-income taxpayers, taxpayers with business income, large corporations, and earned income tax credit claimants. Read more about What is the audit rate?
How did the major COVID-19 pandemic relief bills affect taxes? Q.How did the major COVID-19 pandemic relief bills affect taxes? A.The onset of the COVID-19 global pandemic in early 2020 prompted a sharp and severe global recession, as health authorities urged individuals to isolate as much as possible to slow the spread of the disease. To help keep businesses afloat during this period and aid people who lost work as layoffs surged, Congress adopted a series of measures, including tax cuts, to mitigate the economic damage and promote a faster recovery. Read more about How did the major COVID-19 pandemic relief bills affect taxes?